Greencore abandons Northern bid

Greencore has abandoned plans to buy Northern Foods, saying it will not submit in a revised offer for the UK-based firm.

Last week the company said it was continuing to consider its options in relation to Northern Foods after the board backed a rival offer by businessman Ranjit Boparan that valued Northern Foods at £342 million, over an all-share offer from Greencore.
 
However, this morning Greencore said that although it had been in talks with a potential partner to agree a sale of certain Northern Foods brands that would supply "significant funding", it now believed a new offer could not be submitted.  
 
"This approach was intended to provide significant funding and allow Greencore to acquire only the parts of the Northern Foods business with the greatest synergy potential. This relatively complex structure required a range of stakeholders to reach agreement," it said in a statement. 

"However, after substantial investigation, the board has determined that an improved offer could not be concluded on terms which would deliver sufficiently strong returns to Greencore shareholders."

Mr Boparan has received the support of more than 34 per cent of Northern Food shareholders for his 73 pence a share offer for the company, which produces Goodfella's pizzas and Fox's biscuits. He needs 75 per cent of shareholders to accept his offer and has set a deadline of March 16th by which shareholders must respond.